Why pay a car in cash when most times the financing is quite free? You can easily out invest 2.9% etc. If you're insuring it atleast might as well finance.
Discussion
The problem with financing is most people just look at the monthly payment (i.e. "it's only another $10 a month) - and once you get used to that, then everything becomes a monthly payment...
Most people don't have the fiscal discipline to succeed at this - it's frankly why it's so difficult for so many to save money, because virtually everything now is financed down to an "affordable monthly payment". It's why Americans typically have overwhelming credit card debt...
Financing (anything) is the quickest path to fiscal ruin.
Maybe good advice for the undisciplined, but burrowing with interest below inflation rates is a no brainer if you have some accounting skills.
I agree with you on the math...yet I've seen so many people with TONS of monthy payments, from car to Netflix to wine deliveries...and they quickly "use up" their paychecks so nothing is left. Staggering really...
There is a tremendous amount of discretionary spending in today's society--and trimming back on those expenses is the easiest path to financial success.
Unfortunately, very few choose to do so...
Credit cards and buying with money you don't have is the problem, agreed. You can never get wealth this way. But taking free money to make money is the way if you already have some.
Debt is never a good thing.
Cash flowing debt ain't bad
Any debt is a negative.
Imagine you have debt on a duplex you have a loan on but after all the bills are paid you are left with a monthly positive 500$. How Is the debt on said duplex a bad thing?